Manchester United have been dealt a setback after West Ham United refused to reduce their asking price for midfielder Mateus Fernandes, despite expectations of a discounted deal following their relegation, according to a new report.

The Red Devils are preparing for a major midfield overhaul this summer, with plans to bring in at least two—possibly three if Manuel Ugarte departs—new additions to strengthen their squad at Old Trafford.

United’s main focus is to sign a marquee replacement for Casemiro, whose contract runs out this month, specifically in the No.6 role. They are also seeking an energetic No.8 and a cost-effective young player with significant potential.

The club’s top targets reportedly include Nottingham Forest standout Elliot Anderson and Real Madrid star Aurélien Tchouaméni, though deals for either appear difficult at this stage.

Sandro Tonali is another strong contender, admired for his combination of technical ability and physical strength—qualities United’s recruitment team are prioritising. However, Newcastle United’s £100 million valuation has dampened their interest.

Similarly, the pursuit of Carlos Baleba has stalled. The Brighton & Hove Albion midfielder, aged 22, had previously agreed personal terms with United, but the Seagulls’ firm stance on valuation—despite a dip in the player’s form—has cooled negotiations.

As a result, Fernandes has quickly become a prime target for United. West Ham’s relegation was expected to lower his price, as the club must raise around £150 million through player sales.

However, the so-called ‘Premier League tax’ seems to be in full effect, with West Ham reportedly demanding “up to £80 million” for the 21-year-old Portuguese international, according to The Times.

United remain the favourites to land Fernandes after holding productive discussions with his representatives. Reports suggest the player is eager to move to Old Trafford, describing it as a “dream move,” even ahead of other major offers.

Both Arsenal and Paris Saint-Germain—this year’s Champions League finalists—have expressed interest, while Chelsea, Manchester City, and Newcastle United have also been monitoring the situation.

Initially, it was believed that a fee around £60 million could secure Fernandes’ services after West Ham’s drop to the Championship, comfortably fitting within INEOS’s transfer budget.

A separate report from The Times noted: “United are also hopeful of completing the signing of the West Ham midfielder Mateus Fernandes for about £40 million, after their relegation to the Championship.”

Nevertheless, West Ham appear to recognise the immense potential of their young star and are determined to be fairly compensated, setting an asking price nearly double United’s initial estimate. The £38 million transfer that brought Fernandes from Southampton to the London Stadium last summer included a 15% sell-on clause, strengthening West Ham’s negotiating stance.

While Fernandes is widely regarded as a talented midfielder with considerable room to develop, he is still a work in progress. An £80 million investment for potential is something Paris Saint-Germain can justify—but it remains a stretch for United.

If West Ham maintain their valuation and trigger a bidding war, the Red Devils might once again be forced to abandon a key target in their ongoing quest to rebuild their midfield.

However, should Fernandes push to complete his long-desired move to Old Trafford, United could yet persuade West Ham to settle on a compromise fee closer to £60 million—an amount more reflective of a 21-year-old with significant promise.